A long list of creditors is awaiting nearly $5 million in debt payment from Port Coquitlam based company Rhino Marketing Inc.

This list includes several local non-profit organizations, such as Crossroads Hospice Society ($10,000), Douglas College Foundation ($5,000), Eagle Ridge Hospital Foundation ($4,400) and Hope for Freedom Society ($2,400). Rhino Marketing founder and CEO Doug Morneau is a board member for Crossroads.

As well, 16 other Tri-Cities companies are creditors in the anticipated proposal, including Reotech Construction Ltd. ($58,815.79), Audio Video Unlimited ($16,143.91) Unity Telecom ($7,665.83) and Impact Canopies Canada Inc. ($7,533.78).

Hazel Postma of the Douglas College Foundation said without the sponsorship funds, there might be less money available for students at the end of the year.

"It's actually the first time in our 26-year history that this has ever happened. But I would like to say that it's really sad when this happens. These are difficult days for businesses," Postma said.

"I really enjoyed working with Rhino, and I'm very sorry that this has happened to them . I'm really sorry that they find themselves in this predicament. They were very supportive and I've enjoyed working with them.

I hope that they can work through this."

Creditors received copies of a certificate of filing a notice of intention to make a proposal under the Bankruptcy and Insolvency Act, dated Jan. 10 from trustee Boale, Wood & Company Ltd.

Under this act, Rhino Marketing Inc. is required to formulate and file a proposal to its creditors within the next 30 days or apply for an extension through the court.

Blair Mantin, senior vice-president of E. Sands and Associates Inc., explained the process in general terms.

"The way it works is the company is essentially trying to avoid bankruptcy by making an offer to the creditors. So they're saying if they went bankrupt, everyone's going to be worse off," said Mantin, who is not associated with this case.

"By making a proposal, the creditors are going to be asked to get something less than full payment. I don't know the specifics, but it's trying to make a co-operative effort so that they can avoid bankruptcy."

The payout depends on the specifics of the proposal, he added.

The majority of creditors representing two-thirds of the value must agree to the proposal.

"From there, you generally have to treat the creditors equally," Mantin said.

"So if someone has a bigger debt, they're going to get the same pro rata payout."

Of the 85 creditors, the largest debt is to the Royal Bank of Canada at $2 million (which is identified in the notice of intention as being secured), followed by Lake Group Media (more than $1.46 million) and Vancouver Arena Limited Partnership ($693,280).

In late 2010, the Vancouver Canucks signed a three-year deal with Rhino Marketing to promote the team's charitable initiatives. In exchange, Rhino's logo would be prominently displayed. According to Rhino Marketing's website, it is the first-ever company to sponsor the Canucks for Kids Fund 50/50 program. Canucks Sports & Entertainment is on the list of creditors for $112,000, as is Canucks for Kids Funds at $25,850.

Founded in 1985 as a small consultancy, Rhino Marketing now has offices in Port Coquitlam, Vancouver and Los Angeles.

"Chief Rhino" Morneau was named the 2010 business leader of the year by the Tri-Cities Chamber of Commerce, which is also a creditor for $20.

Morneau was not available for an interview during business hours before NOW deadline.

The NOW's former parent company, Postmedia Community Publishing, is also a creditor for $2,721.60.

Here are the Tri-Cities creditors:

. Artrageous Screenprinting & Signs, Port Coquitlam - $715.12

. Audio Video Unlimited, Coquitlam - $16,143.91

. Blue Moose Promotions, Port Coquitlam - $6,559.08

. Crossroads Hospice Society, Coquitlam - $10,000.00

. Douglas College Foundation, Coquitlam - $5,000.00

. DPI - Dynamic Productions Inc., Coquitlam - $1,800.01

. Eagle Ridge Hospital Foundation, Port Moody - $4,400.00

. Eddy Au, Coquitlam - $1,310.40 . Hope for Freedom Society, Coquitlam - $2,400.00

. Impact Canopies Canada Inc., Port Coquitlam - $7,533.78

. Michael Davis, Coquitlam - $1,561.14 . Reotech Construction Ltd., Coquitlam - $58,815.79

. Sandpiper Signs & Decals Inc., Coquitlam - $1,482.88

. Shawn Lam Video, Port Coquitlam - $4,536.00

. Stealth Security Inc., Port Coquitlam - $112.00

. T.W. Hawes Inc., Port Moody - $3,208.80 . Total Green Commercial Cleaning, Coquitlam - $845.72

. Tri-Cities Chamber of Commerce, Coquitlam - $20.00

. Unity Telecom, Coquitlam - $7,665.83

. Williams Moving & Storage - $1,209.60

jmcfee@thenownews.com